Fair Value Measurement

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurement

NOTE 2—FAIR VALUE MEASUREMENT

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including cash equivalents, and available-for sale-securities. The fair value of these assets were determined based on a three-tier hierarchy under the authoritative guidance for fair value measurements and disclosures that prioritizes the inputs used in measuring fair value as follows:

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The fair value measurements of the Company’s cash equivalents, and available-for-sale marketable securities are identified at the following levels within the fair value hierarchy (in thousands):

	March 31, 2016
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	19,387	$	19,387	$	—	$	—
U.S. government sponsored entity debt securities		8,670		8,670		—		—
Total		28,057		28,057		—		—
Marketable securities:
Commercial paper securities		32,468		—		32,468		—
Corporate debt securities		14,559		—		14,559		—
U.S. government sponsored entity debt securities		108,548		—		108,548		—
Total		155,575		—		155,575		—
Total cash equivalents and marketable securities	$	183,632	$	28,057	$	155,575	$	—

	December 31, 2015
	Fair Value Measurements
	Total		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	25,070	$	25,070	$	—	$	—
Commercial paper securities		2,000		2,000		—		—
U.S. government sponsored entity debt securities		38,867		38,867		—		—
Total		65,937		65,937		—		—
Marketable securities:
Commercial paper securities		30,717		—		30,717		—
Corporate debt securities		17,263		—		17,263		—
U.S. government sponsored entity debt securities		91,538		—		91,538		—
Total		139,518		—		139,518		—
Total cash equivalents and marketable securities	$	205,455	$	65,937	$	139,518	$	—

The Company generally classifies its marketable securities as Level 2. Instruments can be classified as Level 2 when observable market prices for identical securities that are traded in less active markets are used. When observable market prices for identical securities are not available, such instruments are priced using benchmark curves, benchmarking of like securities, sector groupings, matrix pricing and valuation models. These valuation models are proprietary to the pricing providers or brokers and incorporate a number of inputs, including, listed in approximate order of priority: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. For certain security types, additional inputs may be used, or some of the standard inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on any given day.